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An economic evaluation of the range improvements administered by the Bureau of Land Management in the Vale District of Oregon

The federal government has spent considerable sums of money to
rehabilitate range lands administered by the Bureau of Land Management
(BLM). These investments have had varying effects on the production
and utilization of forage on these lands.
One of the most surprising results, according to BLM officials,
of the investments undertaken during the Vale Project has been the
increased productivity of native lands in the Vale District of the
BLM. This study was initiated to examine these effects and to evaluate
the investments that have been undertaken during the project.
The theoretical relationships that exist between the production,
utilization, and administration of resources were developed to explain
how various range improvements may affect forage production. This
body of theory was also used to develop two hypotheses. The first
hypothesis stated that increased forage production on native lands in
the Vale District have resulted from increased forage production on
improved areas. The second hypothesis stated that increased forage
on improved areas have resulted from increased production of native
areas in the Vale District.
Parameters of a system of simultaneous equations were estimated
by least squares using cost and forage response data obtained from BLM
officials at the Vale District.
Statistical tests, based on the preceding parameter estimates,
indicated that forage production on native lands has been significantly
affected by forage production on improved areas (first hypothesis).
These tests also indicated that increased forage production on native
areas has increased the production of forage on improved areas.
Parameter estimates were also used to evaluate the returns
necessary to earn a five percent return on the investments undertaken
during the Vale Project. This evaluation indicated that an Animal Unit
Month (AUM) of federal forage must be worth more than $6.00 for spray
and seed areas, $5.00 for spray areas, $2.50 for native areas, $2.00
for plow and seed areas, and $1.00 for Old Rehab areas.
Three major conclusions were derived from the results of this
study. First, utilization rates have significant bearing on the
returns that may be expected from an investment for range improvement.
Second, investments that increase the production of forage in one
area can affect the production of forage in other areas if utilization
practices (management of the forage resource) such as those used by
the BLM are followed. Third, many of the rehabilitation projects
that have been undertaken by the BLM during the Vale Project have
yielded less than a five percent return on the investments. / Graduation date: 1971

Identiferoai:union.ndltd.org:ORGSU/oai:ir.library.oregonstate.edu:1957/26516
Date04 March 1971
CreatorsGodfrey, E. Bruce
ContributorsStevens, Joe B.
Source SetsOregon State University
Languageen_US
Detected LanguageEnglish
TypeThesis/Dissertation

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